Contents

Introduction .................................................................................................................................... 2
Why Financial Technology matters ................................................................................................. 2
10 Big Financial Technology Trends for 2018 ................................................................................. 4
Top Financial Technology Companies............................................................................................. 5
Future of Financial Technology ....................................................................................................... 8
Introduction

Financial Technology implies to money related innovation which alludes to the utilization of
programming and computerized stages to convey monetary administrations to customers.
Customary online business suppliers got supplanted by new type of proficient administrations
after the economic emergency of 2008 albeit budgetary innovation has been around as long as
money related administrations industry itself has been going near. The way we handle cash is
changing and the entire business is observing - from worldwide banks to back room new
companies. Financial technology joins the innovation from enormous information and
examination, versatile figuring and current money related administrations. These advanced
apparatuses frequently upset built up plans of action by making new and gainful strategies for
giving administrations.

Why Financial Technology matters

With regards to financial inclusion, financial technology holds unfathomable potential. As new
instruments and advancements are created, and old plans of action are tested, financial
services can be furnished with more noteworthy speed, responsibility, and productivity. Access
to financial items and services is winding up more achievable than any time in recent memory,
particularly for customers that live in districts without the structures of a modern economy. Not
exclusively can financial technology make these items and administrations more available, it
can likewise make them more reasonable by bringing down the cost of working together for the
financial establishment, an investment fund which can be passed on to the purchaser. Since
2008, the Fintech insurgency has snowballed and we're currently observing energizing
advancements in a scope of administrations including P2P loaning, worldwide financial
balances, outside trade, worldwide money, installments and crowdfunding to give some
examples. Here are some reasons as to why financial technology needs more attention in the
ever growing financial industry:

 Technology: Banks are based on decades old frameworks and we're not
misrepresenting here. In some of the biggest retail banks in any country, their
architecture was initially built in the late 80’s and 90’s. After this initial period,
technology rapidly advanced and is still sprinting even faster today. Because of this,
banks have picked the savviest alternative and added layers to their current frameworks
as opposed to tearing out the obsolete stuff and beginning crisp with the new tech.
Basically, this implies the establishments of their contributions today are as yet instilled
with the framework engineering of the earlier century and the impediments this
accompanies. In view of the greater part of this, they can't stay aware of the most
 recent mechanical developments and actualize them anyplace close to an
indistinguishable rate from financial technology. This means a slower and less
advantageous experience for clients.
 Customer Service: Like the small independent organizations in your town, you'll
typically discover you get a more individual administration from these individuals since
they think more about you and keeping you glad. Like them, financial technology firms
are endeavoring to manufacture a client base starting with no outside help and need to
inform the world regarding the one of a kind administration they are putting forth. Its
old school benefit with new school tech. At last, an underlying gathering of clients are
not going to be amped up for an organization or prescribe them to their companions if
the administration they got was anything shy of tremendous.
 Adaptable: We move at lightning speed, implying that in the event that we get criticism
from our clients saying that they don't care for a part of our item or reveal to us a way
we could enhance their experience, we follow up on it! We don't have a corporate
hierarchy of leadership to explore through to complete something. Rather, top ability
who customarily flourish in banks are presently flooding into the technical scene to
work in a culture where individuals need to change the world in their industry, and they
are succeeding. These are the general population who help make the financial
technology so versatile by bringing their mastery and having the opportunity to execute
upgrades quickly.
 Innovatve: A common working environment in tech and alternative finance start-ups is
an open office, meaning developers, customer support, marketing, sales, data scientists
and accountants alike all sit pretty much an arm’s length away from each other. There
are no cubicles or fancy offices for individuals. This kind of environment is a breeding
ground for sharing, improving and implementing ideas from all parts of the business and
not just the product management team (as it is in banks) who rarely speak to an actual
customer.
 Cheaper: By and large, financial technology firms have a substantially smaller work drive
than banks. The administration in the corporate saving money world outcomes in a
considerable measure of inward positions being made to fulfill an outside motivation
and not to really have any advantage on their clients. Accordingly, assets are spent in
the wrong places that could have on the other hand been spent on enhancing the client
experience and this administration prompts assignments (which don't have any
sponsorship of solid information or research) to take need over the things that are really
critical.
10 Big Financial Technology Trends for 2018

2018 guarantees to be the year we see the perfection of some key advancements — from blockchain
and shrewd AI, to configuration considering and the cloud. Here are the 9 greatest patterns recognized
by reports from Synechron and Capgemini:

Massive Investments in Digital Transformations: Encounters with non-managing an account

enterprises, for example, retail and interchanges have formed shoppers' desires from banks and credit
associations. As clients turn out to be more computerized, all the more requesting and more technically
knowledgeable, inheritance bank foundation is stressed to help new methods of commitment and
develop advanced endeavors altogether. Because of expanding focused weights and individuals' rising
desires, budgetary foundations around the globe are putting forcefully in computerized change
ventures.

The Frontiers of Innovation: AI and Blockchain: As per a report from Synechron, blockchain and
manmade brainpower (AI) will keep on disrupting the money related administrations industry. AI
advancement will center around intellectual use in the business, showcasing, speculations, riches
administration and consistence areas of the budgetary administrations industry. This is a basic advance
in moving from cutting edge mechanical innovations like machine learning and prescient examination to
genuine development in intellectual processing. Synechron additionally predicts that robo-financial
specialists will turn into the brought together financial technology stage for riches supervisors.

Digital-Only Banks Become a Real Threat: With the whole managing an account industry moving to
advanced channels, computerized just players will posture an ever increasing number of difficulties to
the verifiable predominance of customary banks and credit associations. As indicated by Capgemini's
Top 10 Technology Trends in Retail Banking, this new type of saving money suppliers has opposed the
regular model with exceptionally imaginative items and administrations with mass interest to the
present carefully sagacious buyer. These challenger banks will fuel expanded rivalry in the business,
constraining conventional monetary organizations to enhance their computerized contributions and
stretch out their compass to battle off these disruptors.

Design Thinking: Synechron says that "plan considering" should be joined with innovative designing to
convey the UX vision to reality. Saving money suppliers will center around a couple of key utilize cases
and innovations where client first plan is critical, similar to account opening and enlarged reality.
Expanded Reality (AR) and Virtual Reality (VR) will profit by improvements in immersive UX
configuration went for enhancing the client encounter. The record onboarding procedure will see a lift
from UX outline innovations as a more intelligent and gamified involvement with normal dialect
preparing and machine learning.

Real Time-Risk Decisions: AI will likewise bolster hazard administration by enhancing the undertaking
wide hazard investigation expected to satisfy the changing needs of the association. Given the pace at
which the monetary administrations industry moves, the objective for 2018 is continuous hazard
through AI/mechanization while working inside consistence and administrative parameters.
Alternative Lenders Leverage Alternative Data: Capgemini says that the 2008 financial crisis left banks
and credit unions at a disadvantage with credit challenged consumers. This — combined with the
emergence of online lending technology and streamlined lending processes — made room for
alternative lenders to thrive in this environment. According to Capgemini’s report, “these non-
traditional lenders use technology-based algorithms and software integrations to assess credit profiles
of customers and are also leveraging alternative data such as social media photos and check-ins, GPS
data, e-commerce and online purchases, mobile data, and bill payments.”

RegTech: With an inexorably complex administrative condition, budgetary organizations will likewise
begin taking a gander at AI to increase importance from bigger and bigger volumes of administrative
information. With more up to date controls like Fundamental Review of Trading Book (FRTB) and
Consolidated Audit Trail (CAT) consistence, a tech-first approach will end up essential. RegTech has a
crucial part to play as firms move past beginning MiFID II consistence and acquire long haul profits by
the direction and adopt a tech-first strategy to their consistence endeavors. This will establish the
framework for more noteworthy economies of scale crosswise over information, examination, and
related dangers.

Big Data Gets Even Bigger: Enormous information activities are pushing more refined and more open
plans of action with better information instruments and representations. While the starting endeavors
for information institutionalization have just begun, monetary establishments are as yet depending on
heritage information design and foundation. Venturing forward with future frameworks is a need for
information in 2018. Also, this requires new information foundation to consent to the up and coming
new information necessities like General Data Protection Regulation (GDPR) and Payment Services
Directive II (PSD2). With those progressions, better approaches for separating extra an incentive from
information have developed, for example, information virtualization, information heredity, and
information representation.

Interfacing with Third-Party Providers to Drive Customer-Centricity: Through open APIs, banks and
credit associations will experience critical changes in the way they give CX-based procedures. Fintech
organizations are getting to be players in the client voyage, and banks and credit associations are never
again responsible for the client travel. Clients are progressively receiving fintech contributions for better
administrations, leaving banks and credit associations no decision however to adjust – or get left behind.

The Cloud: Creeping Into Every Corner: In 2018, selection of the cloud in managing an account will
increment, however with the attention on security and administrative consistence proceeding to be up
front. Hope to see endeavor wide center and bank-office applications begin to move into the cloud.
Banks and credit associations will feel the push to make more cloud-empowered plans of action in 2018,
while the utilization of open APIs will drive purchaser applications to the cloud significantly more.

Top Financial Technology Companies

Financial technology is quick clearing another route for the eventual fate of the monetary
world. It is just a short time while everything around us will have financial technology as its
point of convergence. Here is a list of the top nine financial technology organizations from
around the globe:

Adyen: Established in 2006, Adyen furnishes organizations with a solitary stage to acknowledge
installments through any business divert anyplace on the planet. Netherlands based Adyen
serves in excess of 4,500 organizations to process installments through versatile, online mode,
or in-store. Adyen keeps on developing at a quick pace and has a great list of clients, including,
Facebook, Uber, Netflix, Spotify, L'Oréal, Burberry, Symantec and Microsoft. Its 2016 income
outperformed $700 million, up from $365 million of every 2015. Amid 2016, $90 billion in
exchanges were handled by Adyen, an expansion of 80% year-on-year.

Ant Financial: China-based Ant Financial is a spin off from the Alibaba Group (BABA). Formally
established in 2014, it has started from Alipay – the world's driving outsider installment stage
established in 2004. Today, Ant Financial runs Alipay, Ant Fortune, Ant Financial Cloud and
other money related administrations. Together, Ant Financial and its partners cover wealth
management, credit detailing, private bank, installments and cloud computing. Its business
esteem was evaluated at an astounding $75 billion out of 2016. Ant Financial tops the rundown
of the most foreseen IPOs.

Avant: Established in 2012, Avant is a U.S based web based loaning platform bringing down the
expenses and hindrances of acquiring for buyers. Avant is a tech organization that is committed
to making inventive and commonsense budgetary items for all shoppers. The organization has
engaged in excess of 500,000 clients and has an advance portfolio worth $3.5 billion.

Klarna: Klarna is a Swedish organization which started its voyage in 2005. With its
concentration to make web based shopping simple and bother free and hence encouraging
both purchasing and selling. Klarna works with a vendor base of more than 65,000 with some
outstanding names, for example, Spotify, Disney, Samsung, Wish and ASOS as its customers. It
caters more than 45 million end clients with its representative base of 1500 crosswise over 18
markets. It has an expected estimation of 42.25 billion.

Lufax: Established in 2011 and headquartered in Shanghai, Lufax is a shared loan specialist and
financing organization, possessed by Ping An Group with a solid nearness in China. Ping An
Group's 2016 yearly report specifies that, “The strategic deployment of the internet business is
constantly improving, and its value is gradually becoming more apparent. Lufax Holding
completed its B-round financing of $1,200 million, which brought its valuation to $18,500
million.”

Oscar: Oscar is a conspicuous insurtech start-up established in 2013 in the United States. By
brining protection and innovation together, Oscar has taken a shot at approaches to enhance
the medicinal services framework and client encounter. It is doing as such by giving a
straightforward and quicker restorative claim process, all at negligible expenses. Oscar is
making medicinal services framework straightforward, proficient and practical for clients.
Noticeable names, for example, Fidelity, Google Capital and Khosla Ventures, among others are
on its rundown of speculators. Khosla wanders characterizes OSCAR as, "another sort of
medical coverage organization that is utilizing innovation to make protection basic, instinctive
and human."

Qudian: Established in 2014, Qudian is a China-based Fintech firm having a place with the class
of 'loaning.' Qudian comprehensively works as an understudy miniaturized scale credit site, a
portion installment and venture administration stage. While in the Western nations, numerous
buys are made through credit cards which permit payback in portions, the buyers in Chinese
markets don't presently utilize quite a bit of that system and this made extension for stages, for
example, Qudian. The organization has shaped associations with a few web based business,
computerized administrations and money related administrations in an offer to draw in buyers.
Qudian which is probably going to open up to the world soon and hopes to raise $800 million to
$1 billion. Around 33 billion yuan in advances was encouraged, the figure is anticipated to
dramatically increase to 80 billion yuan in 2017.

SoFi: SoFi calls itself, "a new kind of finance company" which is adopting a non-conventional
strategy to loaning and now riches administration. The organization is situated in San Francisco
and was made in 2011 by four understudies who met at the Stanford Graduate School of
Business. The organization now offers, understudy advance renegotiating, contract advances,
individual credits, riches administration and disaster protection. SoFi has since developed to
end up a multi-billion-dollar organization with over $19 billion of credits financed to date and in
excess of 300,000 individuals.

Xero: Xero, one of the fastest growing ‘software as a service’ company was founded in 2006 in
New Zealand. The company develops easy-to-use online accounting software for small
businesses and has more than 1 million subscribers. Its product lineup includes a full accrual
accounting system with a cashbook, automated daily bank feeds, invoicing, debtors, creditors,
sales tax and reporting. Xero recorded over NZ$1.4 trillion transactions last year. It was
recognized as the World’s Most Innovative Growth Company in 2014 and 2015 by Forbes.

Future of Financial Technology

While financial technology has made a wide margin as of late, it is critical to recollect the
business is still in its initial days. What's more, development in this part doesn't hint at abating
at any point in the near future. Investment in financial technology is anticipated to stay solid,
and the interest for it among insightful shoppers and ground breaking organizations is relied
upon to rise.
The following graph shows the rise of investment in financial technology according to a report by World
Economic Forum.

Global Investment in Financial Technology, $bn

14

12

10

0
2008 2009 2010 2011 2012 2013 2014

United States Europe Asia Pacific Others

As indicated by a report distributed by KPMG and CB Insights, financial technology financing

came to $2.9 billion in the second from last quarter of 2016 alone. This upward pattern is being
energized by the need to tackle the changing prerequisites of the present computerized buyer
and adjust to the way they like to execute.

Organizations that emphasis on application programming interfaces (APIs) are basically

permitting distinctive players in the financial technology environment to work together, taking
into account more prominent mix of the administrations diverse associations can offer. They're
centered around influencing the purchaser to encounter less complex and more helpful. There
will be significantly greater movement in the region of APIs and it's the place financial
technology have a genuine chance to have any kind of effect in the business.

Developing financial technology players are picking up footing in light of the fact that numerous
shoppers, especially twenty to thirty year olds, trust their item contributions are more intune
with their requirements than the customary banks and financial establishments. While
technology is a major part, client encounter is the establishment fundamental financial
technology achievement.

The greater part of the substantial officeholders are taking a gander at the financial technology
new businesses as advancement openings. So they will be securing these openings and dangers
too. Notwithstanding obtaining financial advances, different establishments are building
organizations with rising firms notwithstanding supporting their development and
improvement.

In spite of the development and early achievement, the financial technology scene isn't without
its difficulties. While they aren't hampered by inheritance frameworks and mentalities, they
should consider directions, the worldwide size of conventional financial foundations, and
instructing buyers on utilizing complicated technology.